Queen Charlotte Drive, the direct route between Havelock to the west and Picton to the east, passes through it.

[1][2] Linkwater started as a milling town in 1861 due to a stand of kahikatea trees in the area and its proximity to the Marlborough Sounds.

When gold was discovered in 1864 at Hall's Creek, the town expanded with three hotels opening.

The gold rush resulted in the foundation of Cullensville a few km to the south of Linkwater.

The Linkwater Co-operative Dairy Factory was established in 1911, and produced milk, cream and cheese until 1953.